Chat with us, powered by LiveChat 4-37 Algo Margin of Safety and Operating LeverageM - Writemia

4-37 Algo Margin of Safety and Operating LeverageM

4-37 Algo Margin of Safety and Operating LeverageMedina Company produces a single product The projected income statement for the coming year is as follows:Sales (60,000 units @ $2300)$1,380,000Total variable cost345,000Contribution margin$ 1,035,000Total fixed cost1,000,500Operating income$ 34,500Required:1Compute the break-even sales dollars$2Compute the margin of safety in sales dollars$3Compute the degree of operating leverage4Compute the new operating income if sales are 20% higher than expected

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